Indonesia and the European Union have signed a trade agreement that eliminates more than 98% of tariffs and opens up new opportunities for investment and trade.
This is reported by The Wall Street Journal.
The agreement, which has been negotiated for more than nine years, was signed during a visit to Jakarta by European Commissioner for Trade and Economic Security Maroš Šefčovič. According to the European official, it removes almost all barriers to trade and opens up new avenues for investment. The agreement is expected to be ratified by January 1, 2027.
Indonesian Economy Ministry spokesman Haryo Limanseto said the deal benefits labor-intensive sectors such as footwear, textiles, clothing, palm oil, fishing, renewable energy and electric vehicles. Šefčovič added that the deal provides a “balanced outcome” and a gradual reduction in tariffs on imported cars, which will open the door for European car exports and investment in electric vehicles.
The deal is expected to double bilateral trade within five years as Indonesia gains greater market access to the 27-nation EU. The EU is Indonesia's fifth-largest trading partner, with trade between the two sides exceeding 27 billion euros last year, the WSJ reported.
Thailand, the Philippines and Malaysia are also in talks with the EU, while China and the Association of Southeast Asian Nations concluded talks to renew their trade agreement earlier this year.
Source: suspilne.media
